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Apple pays $100m to Creative in patent lawsuit settlement

Remember all that talk of Creative beating Apple to the punch with patenting various elements of the iPod's UI? Today these talks came to an end, with Apple whipping out the checkbook, and Creative (I'm assuming) throwing a party. That's right: Apple has shelled out USD $100 million to Creative for "a paid-up license to use Creative's recently awarded patent in all Apple products." Fortunately, Apple might be able to get some of that cash back if Creative is successful in suing their way to profitability licensing their patents to anyone else.

There is yet another bright side for Apple, however: Creative has also hopped on board the 'Made for iPod' program, and has a slew of accessories on the way for everyone's favorite little DAP, such as speaker systems, headphones and a family of X-Fi 'audio enhancement products.'

Isn't it great when everyone can just get along and play nicely together - especially when $100m says so? Check out Apple's press release for the rest of the details on the settlement.

[via MacMinute]

Remember all that talk of Creative beating Apple to the punch with patenting various elements of the iPod's UI? Today these talks came to...
 

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Sabbers

So Apple have had to cough up $100m, my heart bleeds for them.
Perhaps it means they won't be able to pay the marketing staff as much this year, and instead spend money on product development. Theres a thought for them !!!!

August 25 2006 at 4:36 AM Report abuse rate up rate down Reply
Paul Senior

Apple have been accused of helping themselves to someone else's technology. Some people call it stealing. And whilst I'm sure this settlement is made without any admission that they did so, Apple wouldn't pay $100m for nothing.

Would this be the first time we have seen someone else's bright idea incorporated into an Apple product? I think not.

And if Creative hadn't been a substantial company with (1) a good patent on its idea, and (2) the resources to mount a challenge, Apple would probably have gotten away with it.

August 25 2006 at 3:13 AM Report abuse rate up rate down Reply
jbelkin

Another reason for Apple to settle and "agree" that Creative was first with the text scroll interface thing - now MS will have to pony up for Zune (which is essentially that except in reverse) ... bringing into play that little Apple point in the settlement ($100 million minus any other settlements Creative makes) ... so the ultimate sum might be ZERO for Apple.

August 24 2006 at 4:45 PM Report abuse rate up rate down Reply
David Chartier

#17: That rules! Thanks for the link.

Oh this is such a surprise! I'd like to thank my AOL overlords, Scott McNulty for not firing me, um... my family, my toy poodle I carry with me in a Gucci bag (just kidding, I have a Blue Heeler and he rules, and I'm not one for posch designer brands), and all the fans! And...

August 24 2006 at 12:30 PM Report abuse rate up rate down Reply
Ryan

Finally Apple are penalised for taking other peoples work and not giving back. The only reason they have got away with it so far is because they take from the open source community and so don't really have to pay. Well done Creative, finally Apple pay up for all the ideas they take and market as their own.

August 24 2006 at 10:26 AM Report abuse rate up rate down Reply
Bill Bowman

I'm guessing that Apple wanted this whole thing wrapped up before they release any new products that this patent might affect.

A cell phone possibly? A proper video iPod?

I think that something new is coming sooner than we think.

August 24 2006 at 8:58 AM Report abuse rate up rate down Reply
Carl Trimble

Good going Apple... If you don't hurry up and put out a 80 gig iPod then I am going to buy a creative... I was just kidding about that last part Apple. Take as long as you want. But I really could use a 80 gig iPod. Please! and Thank you!

August 24 2006 at 8:33 AM Report abuse rate up rate down Reply
Tim

If I recall correctly, Apple has something like $7 or $8 billion in cash in the bank. $100 million is a small price to pay to get this annoying little company off their back. Especially considering how much patent legal battles can cost.

August 24 2006 at 8:18 AM Report abuse rate up rate down Reply
Bart

Gavin (10) and Abby, I agree completely. I think that most of the best inventions and technologies came from a spirit of sharing (the Internet itself?) but this wacky patent business is not just going to screw a few companies, it's going to screw any real cooperative research and real scientific advances. Screw all lawyers, especially patent lawyers.

August 24 2006 at 6:28 AM Report abuse rate up rate down Reply
Abby

Wow, all this suing thing is getting a tad too much these days, especially these major cases.

Imagine a 100 million USD .... And as someone writes...

If Creative had won a patent case against Apple, Apple could have had to pay triple damages. In other words, if Creative made a persuasive case that the total damages were $10 billion, Apple could have been faced with paying $30 billion.

Astounding ...

August 24 2006 at 5:45 AM Report abuse rate up rate down Reply
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